Koufu's net profit down 47% in H2 2020

FOOD-court operator Koufu's net profit for the six months ended Dec 31, 2020 nearly halved year on year - from S$13.58 million down to S$7.35 million - as the pandemic impacted revenue.

Revenue for H2 2020 was 15 per cent lower at S$103.4 million, on the back of lower contributions from both its outlet and mall-management business segment, as well as its food and beverage (F&B) retail business segment.

Earnings per share worked out to 1.32 Singapore cents for the period under review, down from 2.45 cents a year ago.

For the full year, net profit slumped over 64 per cent to S$9.88 million as the pandemic impacted operations, while revenue was 19 per cent lower at S$192.38 million.

Koufu has recommended a final dividend of 0.7 cent per share, down from 1.5 cent per share for the corresponding period a year ago. If approved by shareholders at an upcoming annual general meeting on April 26, the dividend will be paid out on May 24.

In an update on its operations in Singapore, Koufu said that revenue at its food courts and coffee shops - especially those in the heartlands - as well as at its R&B Tea kiosks and its four full-service restaurants has improved significantly since dine-in resumed in Phase 2. However, footfall remains low at food courts near offices, downtown, and in tertiary institutions and tourist hotspots.

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Where expansion is concerned, Koufu has secured two new locations for R&B Tea kiosks at Fusionopolis and Sun Plaza Mall in Sembawang, to be opened in Q1 2021. It will also open food courts in Sun Plaza, its new headquarters at Woodlands Height and at Nanyang Technological University in Q2 2021.

It is also keen to further grow its retail brand Dough Culture, and will open two new locations in Sun Plaza and Oasis Terrace mall in Q1 2021 and Q2 2021 respectively.

While the construction of its integrated facility was delayed because of the measures introduced in Singapore and Malaysia to combat the pandemic, the group expects the temporary occupation permit (TOP) to be obtained in the first quarter of this year, and to commence operations there by Q2.

Koufu will occupy 75 per cent of the total gross floor area of the facility; the remaining space will be tenanted out.

The counter closed at 67 Singapore cents, up one cent, or 1.52 per cent, on Tuesday.